Stellar Price Chart
Stellar - XLM Profiles
Even as bitcoin garnered headlines over the past five years, there were other cryptocurrencies and cryptocurrency platforms which racked up more impressive gains and traction among developers Stellar was one of them. In 2017, the value of Lumen, Stellar’s cryptocurrency, grew by 34,900%. In 2018, the value tumbled by 77%, but then the price was relatively stable throughout 2019 and 2020. Performance improved in 2021, with an increase of 226% from January through March. Its market cap as of Apr, 20 2022, is $5.028 billion. Stellar might offer an interesting opportunity for traders looking to diversify their holdings away from bitcoin. Here is a brief introduction to the coin and its business prospects.
What is Stellar (XLM)?
Stellar is an open-source network for currencies and payments. Stellar makes it possible to create, send and trade digital representations of all forms of money—dollars, pesos, bitcoin, pretty much anything. It’s designed so all the world’s financial systems can work together on a single network.
Stellar has no owner, if anything it’s owned by the public. The software runs across a decentralized, open network and handles millions of transactions each day. Like Bitcoin and Ethereum, Stellar relies on blockchain to keep the network in sync, but the end-user experience is more like cash—Stellar is much faster, cheaper, and more energy-efficient than typical blockchain-based systems.
What is the project trying to achieve?
Stellar is an open, interoperable payment and currency system. Below few of Stellar’s powerful features—asset issuance, the network’s distributed order books, and the path-payments system—that will enhance and simplify any fintech product.
On Stellar, you can issue your own assets
Stellar allows a user to create a redeemable, tradable representation of any asset. Such representations are called tokens. Tokens are most useful when tied to currencies (representing dollars or yuan or euros digitally makes payments borderless and instant) but in theory, on Stellar, you could issue a token for corn bushels or gold as a consultant. In a sense, Stellar offers a generalized toolkit for anyone to do what Tether did for the Dollar with their USDT, or what Coinbase is doing with their USDC. Stellar lets you digitize value and then issue and redeem claims on it; the platform was designed for stablecoins before stablecoin was even a word.
On Stellar, you can trade tokens peer-to-peer
Every token on Stellar is exchangeable with any other token on the network, and the Stellar protocol itself connects buyers and sellers. Users can submit their bids or asks to the public network via a single, simple operation, and every few seconds compatible trades will automatically resolve. Among the top blockchains, Stellar is unique in this regard. The base Stellar protocol not only tracks balances (as Bitcoin or Ethereum do) but also tracks and settles trades between balances in a decentralized, ownerless way.
On Stellar, you can transform currency as you send it
Like any payments system, Stellar allows one user to send currency to another. User A can send User B dollar tokens or XLM or whatever. But Stellar also allows a user to send one currency and have the recipient receive another. Essentially, you can send and exchange money in a single atomic transaction.
This is called a path payment. It’s a powerful innovation for international payments; for example, an American company can pay an invoice in Mexico by spending dollar tokens, while the vendor receives peso tokens. Neither side incurs exchange risk or delays. Both sides get only the currency they want
What is the unique selling point?
Borderless-Limitless-Powerful: Stellar makes it possible to create, send, and trade digital representations of all forms of money: dollars, pesos, bitcoin, pretty much anything. It’s designed so all the world’s financial systems can work together on a single network.
Stellar makes money better: Stellar’s API and SDKs are ready to help you transform the world of finance, and the network’s currency connections could give even a small company the power and reach of an international bank.
Global Payment Apps: Leverage the many currency-backed tokens already on the Stellar network.
Asset exchanges: Use Stellar’s built-in decentralized exchange for crypto, forex, or securities. Users can swap between tokens using simple functions built into the protocol.
Micropayment services: Power payments of any size with Stellar’s low, flat fees and fast transactions.
Their vision for 2022 builds directly on what we learned in 2021, their 2022 roadmap is structured around three strategic building blocks:
Increasing network scalability and network innovation, by increasing network capacity by an order of magnitude and through enabling trust-minimized innovation;
Activating more network participation, through ecosystem input and engagement that informs a long-term Stellar roadmap, driving greater commitment and ownership within the ecosystem, and bringing in new participants through partnerships, technology innovation, marketing, investments, and community activities;
Demanding and promoting diversity and inclusion, by doing the necessary research to know where we stand on the path to our mission, to understand the impact our ecosystem is making, and where we need to focus next to create a more equitable financial system and the network effects that we believe go hand-in-hand.